What is my capital gain and how to avoid this tax?

What is my capital gain and how to avoid this tax?

Hi sir,
I am Sandeep from Vijayawada plz clarify me on the following case.
I made an agreement with a builder M/s CSK Realtors for an amount of Rs18,00,000/- on 26/03/2012 which includes the price for land of 267Sqyrds and G+1 floor residential house construction with furniture on plot.no :455, to be handed over within 30months of agreement.
But, the construction was not done due to presence of HT lines (Power lines) going above to my plot : 455. Hence, the builder cancelled the registration (sale deed) of plot: 455 and registered a new plot : 483 on my name on 30/03/2016. But in the earlier made agreement plot no was not revised in writing to new plot 483, still builder agreed to complete the house as early as possible in the new plot 483.

Otherthan Rs18,00,000/- I still made an investment of Rs2,00,000/- from my pocket for other works like borewell and compound flooring etc at plot 483 for which there are no bills and bank records.

Builder handed over the constructed house to me on 16/08/2018 and mutually agreed to terminate the agreement.

On 25/02/2019 I have sold my house at plot 483 to another party for an amount of Rs25,00,000/-

In this scenario I have following doubts regarding capital gain tax and investment of the received capital gain amount to avoid tax.

1. Whether these capital gain comes under long-term or short-term capital gain. What is the capital gain amount of this transaction?
2. What will be the tax I may need to pay in either case, if proper capital investment is not done in time?
3. I purchased an open residential plot on my name on 22/05/2017 @ APCRDA for amount of Rs17,51,000-(sale deed document value is 5,01,000/-) with additional loan of Rs12,50,000/- from LICHFL as development charges for the layout. Whether this investment can be considered as investment of my obtained capital gain to avoid tax. If yes, what is the procedure to file my tax filings?
4. If above case cannot be considered for my capital gain tax saving, what are the ways to save from capital gain tax?

Asked 6 years ago in Capital Gains Tax

1. It's a long term capital loss. No capital gains.

2. No gain, no tax.

3. Such investments are not considered. However, they're not required in your case. Show capital losses while filing ITR.

4. NA.

Lakshita Bhandari

CA, Mumbai

5687 Answers

943 Consultations

Talk to Lakshita Bhandari

There is no capital gain you are having a loss even if we don't consider the 2 lakh spent by you, you have incurred a long term capital loss of around 2.4 lakh.

Since you have purchased residential plot it can be claimed for exemption but since you are having loss there is no need for same. Also it can't be used as you purchased it in may 2017.

If you want I can help you in filing your income tax return.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo

CA, Jaipur

4306 Answers

101 Consultations

Talk to Naman Maloo

Dear Sir,

Hope you are doing well !!

1. There will be no capital gain tax liability. It is a capital loss.

2.There will be no capital gain tax liability.

3.There is no need for the same.

4. NA in your case as it is a capital loss.

Payal Chhajed

CA, Mumbai

5189 Answers

303 Consultations

Talk to Payal Chhajed

Hi,

1&2. Its capital loss,so No tax to be paid

3& 4. No need ,as no tax liability arises here.

Just you have to declare the transaction in ITR under capital gain section as capital loss on sale .

Hope it helps

Swati Agrawal

CA, Mumbai

1146 Answers

7 Consultations

Talk to Swati Agrawal

Plz let me know how to arrive at capital loss amount. Also the procedure to file my ITR in this case particularly.

Asked 6 years ago

It is a long calculation and you can file ITR on the e filing website by logging into your account and go to e file income tax return it's easy or you can hire a CA for that.

Naman Maloo

CA, Jaipur

4306 Answers

101 Consultations